New Tax Laws Will Fail Without Digital Revenue Systems, Says NRS Chairman

The Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, has said Nigeria’s sweeping tax reforms will only achieve their objectives if revenue administration fully embraces digital systems.

Adedeji made this known during a forum themed ‘Harmonising Revenue Systems and Implementing New Tax Laws,’ organised by the FCT-Internal Revenue Service in Abuja on Monday.

He explained that although the 2025 Tax Reform Acts effective January 1, 2026 have established the legal foundation for a more equitable tax environment, their success depends on eliminating manual and paper-based operations.

He stressed that transitioning to a technology-driven “tax intelligence” framework is essential to meet the Federal Government’s N40.71tn revenue projection for 2026 without raising tax rates.

Represented by the Executive Secretary of the Joint Tax Board, Olusegun Adesokan, Adedeji said, “The engagement is both timely and strategic, and it reflects the direction of Nigeria’s evolving fiscal landscape and our collective responsibility in delivering sustainable reform.”

He noted that President Bola Tinubu’s fiscal initiatives are designed to strengthen Nigeria’s domestic revenue system.

According to him, the effectiveness of the reforms will largely depend on implementation at the state and local levels.

“Their ultimate success, however, rests not merely on the legislative enactments, but on effective implementation, particularly at the sub-national level, where policy translates into real interaction with citizens and businesses,” he stated.

Adedeji called for strong collaboration among relevant agencies, warning that “Fragmented execution weakens reform, while coordinated implementation strengthens it.”

He added that as the nation’s capital, the Federal Capital Territory must serve as a model of “transparency and modern governance standards.”

Highlighting existing challenges, he said, “Fragmented revenue systems, multiplicity of taxes, informal collection mechanisms, illegal roadblocks, and indiscriminate sale of stickers and emblems undermine compliance, raise the cost of doing business, and erode public confidence.”

“Such practices are inconsistent with the standards expected of a 21st-century capital city,” he added.

To address these concerns, Adedeji proposed closer cooperation between the FCT Administration, the FCT-IRS, and the Area Councils. He said clearly defined roles, integrated data platforms, and standardised compliance procedures would reduce duplication and improve service delivery for taxpayers.

He further underscored the central role of technology in revenue generation. “Modern tax systems are digital. They are data-driven and automated. Integrated taxpayer databases, electronic payment platforms, real-time reporting, and analytics-based compliance monitoring are no longer optional. They are foundational to effective fiscal governance,” he said.

Adedeji maintained that expanding revenue sustainably does not require increasing levies but strengthening administrative systems.

Also speaking, the Acting Executive Chairman of the FCT-IRS, Michael Ango, clarified that harmonisation efforts are intended to enhance efficiency rather than override constitutional responsibilities.

“So when we say harmonisation, we are not trying to take over anyone’s responsibility. We are only saying we want to create a system that will ensure efficiency in revenue collection.

“At the end of the day, the revenue will still go where the constitution has provided, and everyone’s revenue will still be credited to them. We are simply saying that we want to have a unified online system for the collection of revenue in the FCT,” Ango explained.

He said the long-term objective is to improve living standards in the capital, noting that February marks 50 years since the FCT was conceived in 1976.

“For us as a revenue authority, the real vision is to provide funding for the FCT so that you and I can have a city where there are good roads, hospitals, schools, bridges, and infrastructure that we can all use as citizens,” he said.

On adopting national tax reforms at the local level, Ango stated that “Timelines would depend on the legislature.”

Addressing concerns about revenue performance and multiple taxation, he assured stakeholders that duplication would soon be tackled.

“But all the issues around duplicity and multiplicity of taxes that we see within the FCT, I can tell you that in a very short time, those things will be resolved. One thing you can be sure of is that the FCT-IRS will be at the centre of that. It will drive this initiative and achieve it for all the residents of the FCT,” he said.

The Federal Government began implementing the new tax regime on January 1, 2026, introducing four key legislations: the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service Establishment Act 2025, and the Joint Revenue Board Establishment Act 2025.

ENDS.